Home » Microstrategy aiming to buy more Bitcoin with $400 Million in Convertible Note

Microstrategy aiming to buy more Bitcoin with $400 Million in Convertible Note

by Brian Armstrong
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MicroStrategy is on a Bitcoin accumulation spree as the company is recognizing the immense potential of leading cryptocurrency.

After procuring more than $500 Million with Bitcoin in the last few months, the company has now offered to issue convertible notes worth $400 to get more Bitcoin.

MicroStrategy Plans to Offer Convertible Notes To Buy More Bitcoin

The firm is buying a massive amount of Bitcoin to strengthen its financial stakes and create a much more stable foundation amid the growing uncertainties in the global economy.

MicroStrategy published the details of the proposal in a Press Release that it is planning to offer $400 million with convertible senior notes to fund purchases of additional bitcoin. The move is with an intent to increase MicroStrategy’s Bitcoin reserve. The Pressrelease said that it intends to invest the proceeds from the sale in Bitcoin as per its Treasury Reserve Policy to increase working capital and other operations.

The convertible notes offered by the company would mature at the end of 2025, and would bear interest, payable on June 15 and December 15 every year starting June 2021. These notes are somewhat like promissory notes, which can be used for investments and purchases and get additional benefits like interest on their convertible notes. The company may also redeem all notes for cash or a portion of notes.

The users would be able to convert their notes in cash or MicroStrategy shares or a mixture of both cash and shares as per the company discretion. Before June 2025, the convertible notes would only be used at selected events and duration.  As per the company, the notes various terms of the notes like conversation rate, interest rates, and the price would be based at the time of pricing of the offering.

MicroStrategy bought 2574 Bitcoins worth $50 million just four days ago as per its Treasure Reserve Policy. The company became one of Bitcoin’s largest holders, with more than 40.823 Bitcoins worth 780 million in its treasury. MicroStrategy has purchased Bitcoins in three batches through Coinbase.

High institutional investment in Bitcoin is exceptionally beneficial for the cryptocurrency. With massive investments and mainstream adoption, Bitcoin is emerging as a profitable and robust asset class, and the leading names in the crypto industry have also endorsed this.


The information discussed by The Coin Magazine is not financial advice. This is for educational and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Do your due diligence and rating before making any investments and consult your financial advisor. The researched information presented we believe to be correct and accurate however there is no guarantee or warranty as to the accuracy, timeliness, completeness. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright The Coin Magazine All rights reserved.

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